Sales of new light vehicles in China decreased 5.3 percent to about 1,589,500 in July as demand for crossovers and SUVs remained weaker for a second straight month. It was the second month this year that China’s new light-vehicle market posted lower sales -- following February, a month with fewer working days than a year earlier due to the Chinese New Year Holiday, according to the China Association of Automobile Manufacturers. After rising non-stop for several years, sales of crossovers and SUVs tapered off in June, sliding 0.5 percent from a year earlier. The decline in the segment’s sales accelerated in July: crossover and SUV deliveries dropped 8.2 percent to roughly 632,700 last month. Sedan sales edged down 1.3 percent to approximately 814,600 while multi-purpose vehicle deliveries plunged 22 percent to around 106,600. The minibus segment staged a strong rebound, with sales up 30 percent from a year earlier, but the volume was tiny – only about 35,600 minibuses were sold last month. Through July, China’s new light vehicle deliveries have risen 3.4 percent to roughly
Nissan has agreed to sell its electric car battery unit to Chinese renewable energy company Envision Group for an undisclosed sum. The announcement comes after Nissan canceled a potential $1 billion sale of the unit to GSR Capital last month, saying the Chinese investment company lacked the funds to make the purchase. Under the agreement, Nissan will retain a 25 percent share or equity interest in the entity newly formed by Envision. The deal, which covers battery plants in Smyrna, Tenn., and Sunderland, England, is expected to close in March. The work force at all operations covered by the deal will continue to be employed, Nissan said in a statement Friday. "The transaction will enable Nissan to concentrate on developing and producing market-leading electric vehicles -- in line with the goals set in our midterm plan," Nissan’s chief competitive officer, Yasuhiro Yamauchi, said. Lei Zhang, CEO of Envision, said in the statement the partnership will help create innovative solutions for the "IoT value chain."
Chinese vehicle imports declined 87 percent in June from a year earlier to 15,000 vehicles as automakers delayed shipments before tariff cuts on foreign-made vehicles took effect last month, according to an industry association. The data from the China Automobile Dealers Association, which was reported by local media on Monday, also showed that overall sales of imported vehicles during the first half of 2018 fell 22 percent year on year to 451,971 vehicles. The association published the June data last week and has yet to release July figures. In May, China said it would steeply cut import tariffs for foreign-made automobiles and car parts to 15 percent from 25 percent starting July 1. But in July, China raised tariffs on vehicles imported from the United States to 40 percent amid rising trade tensions with Washington. "June was the most impacted month," said Wang Cun, director of the China Automobile Dealers Association's import committee. "Many car dealers held back their import orders and decided not to import until July 1," he said.